Human beings are the most important components of an organization and without understanding their nature and behaviour, it may be absolutely difficult to design organization and formulate appropriate management strategies to achieve their objectives. The central argument in the literature of organisation theory when studying human beings is focused on the question.  Do organizations really act on do human beings in them?  Ajobon R.T (1998:33).

To answer the above question, we need to increase our level of objectivity.  The psychological forces motivating the action of individual in an organisation, is quit different from the intentions of the organizational action.  Organisation act as collectivities directing their action towards are overriding goal but human being act as individuals who are motivated by certain psychological factor.

Human beings decide to work in certain organisation because they want to satisfy certain needs.  So, their behaviour in the organisation will be dependent on to what extent they satisfy the needs that motivated their entry into the organisation. 

On the other hand, organization, whether profit on non-profit motives, exist to provide goods and services from the satisfaction of the public and it’s members.  Given this perspective, quality and quantity of outputs of goods and services coupled with profit motive becomes the underlying factors.  Therefore, the ability of the organization to attain high performance in terms of these quality, quality and level of profitability depends greatly on the managerial leadership qualities and the incentives strategies.

A managerial leadership must therefore poses the empathy for intelligence, initiative, the feelings of others and the responsibility to motivate for effective result.